Leaked report exposes abuse of lottery money compensated to minstrel team

Leaked report exposes abuse of lottery money compensated to minstrel team

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Minstrels execute in Athlone on two January 2017. Archive Photograph: Ashraf Hendricks

A report by Lawyers Dabishi Nthambeleni right into a R27.3-million grant from the Countrywide Lotteries Commission on the Cape Town Minstrel Carnival Association (CTMCA) for the minstrels museum has located no proof that a museum at any time existed.
The investigators observed that the CTMCA did not use the R5-million allotted to obtain or produce a museum.
They also located that the CTMCA only bought land truly worth R1.seven-million, not R5-million as allotted.
They located the CTMCA utilized money within the Lottery to buy workshop products from certainly one of its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how countless rand granted to your Cape Town Minstrel Carnival Affiliation (CTMCA) because of the Nationwide Lotteries Commission (NLC) to arrange a museum to rejoice town’s abundant minstrel heritage went astray. The museum was never established.

The main points from the abuse of millions of rands of Lottery resources for a museum that never ever was are discovered in an investigative report commissioned because of the NLC in 2021.

The museum grant was Component of a lot more than R64-million in Lottery funds allotted into the CTMCA between 2003 and 2017.

The primary Component of the investigation, by law company Dabishi Nthambeleni, was conducted concerning September 2020 and January 2021 and centered on a R27.3-million grant to the CTMCA in 2014, which included funding with the museum. The permitted finances to the museum was a lot more than R12.8-million, with R5-million of that allotted for any developing to accommodate the museum.

Browse the report (PDF, 7MB)

The NLC tasked Dabishi Nthambeleni to investigate the acquisition of the building for your museum and whether the museum “really existed”.

The organization was also instructed to investigate

the acquisition with Lottery cash of two vehicles – a sixty-seater bus plus a 23-seater bus – for R2.4-million; and
many machines “purchased for your manufacturing from the costumes and hats” for that minstrels carnival, for R5.4-million.
At enough time, convicted criminal Richard “Pot” Stemmet was director of the CTMCA. He was appointed a director of the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of several administrators on the organisation. Stemmet was reappointed being a director in Could 2021.

The investigation followed intensive reporting by GroundUp concerning the millions of rands of Lottery funding allotted towards the CTMCA (see right here, listed here and listed here) and the way in which the resources most likely helped finance the ANC’s 2014 election marketing campaign within the Western Cape, led by at the time by Marius Fransman.



The building on the correct was the intended web-site of the minstrels’ museum, in the course of an industrial spot in Primrose Park, Cape City. Picture: Raymond Joseph

In reaction to the Parliamentary problem, former NLC Commissioner Thabang Mampane stated grants to three CTMCA “initiatives” - including the museum - involving 2012 and 2015. All three assignments were done, she advised MPs.

Nevertheless the investigators found no proof that a museum had ever existed.

To start with the museum was due to open up in rented premises in Crete Highway, Wetton. A photograph attained by GroundUp in the supposed Wetton museum reveals a espresso store with some musical instruments and minstrel costumes and collages of shots haphazardly hung over the walls, as well as a model ship on its plinth inside a corner.

In its report, Dabishi Nthambeleni explained it had been “not ready” to substantiate if a museum had ever operated from these premises.

Stemmet explained to the investigators the museum had been moved simply because they could no more afford the lease of R100,000 per month. He explained the CTMCA experienced obtained house for R1.7-million in Schaapkraal for your museum, but couldn't get it rezoned, and had been bought for a similar cost. Schaapkraal is in the peri-urban location far from the city.

Due to this fact, the museum were moved to a whole new place in Primrose Park in February 2021, Stemmet advised the Dabishi Nthambeleni investigators. But just after visiting the premises, which might be in an industrial area, the investigators reported they doubted regardless of whether a proper museum existed there. Shots connected on the report display a mishmash of randomly shown uniforms, musical devices and various minstrel paraphernalia nailed for the wall, exhibited on tables and spread out on the floor, with no explanation.

“There is a nominal quantity of merchandise on the museum [that] on no account represent the more than a hundred-year historical past on the Cape City Carnival, the investigators claimed, incorporating that there was “no signage outside the premises indicating they housed a museum and … frequently, the museum isn't going to glance to generally be open to the general public.”

The CTMCA had breached the grant arrangement, Dabishi Nthambeleni mentioned, by shifting The situation of your museum to another locale without having notifying the NLC.



The Schaapkraal property, on which no museum was ever designed. Photo: Raymond Joseph

Buses
Stemmet told the investigators the CTMCA experienced to move from the rented Crete Road premises as it experienced operate up a R4-million credit card debt with the town of Cape Town and was scared its devices could well be hooked up.

“Due to lawful battles and also the debts, the organisation had to move its home from five Crete Street to avoid the sheriff from attaching the home from the organisation,” Stemmet advised the investigators.

Sedrick Soeker, the current director in the CTMCA, explained to them which the two buses purchased with lottery funds were stored inside of a secret place “concealed through the Sheriff”. Even so the investigators claimed they were not able to substantiate that any buses experienced ever been purchased.

Stemmet also confirmed that the buses had been concealed to stop them currently being seized. But in the event the investigators questioned being taken to the location wherever the buses were being saved, he instructed them that “the proprietor of the secret site wasn't available to open up the premises for us”.

“The CTMCA couldn't give evidence of payment for two motor vehicles that it allegedly acquired with grant revenue,” the investigators claimed.

Soeker also told them the Schaapkraal home were bought due to the debt.

“Mr Soeker defined that In line with his understanding, a result of the credit card debt owed to the town of Cape Town, the CTMCA resolved It will be finest to provide their [Schaapkraal] assets … and also to also to cover the assets with the CTMCA to avoid the sheriff from attaching the house.”

JP Smith, Cape Town’s mayco member for basic safety and stability, has previously informed GroundUp the CTMCA “threw revenue absent” on litigation with town.

“Every year like clockwork, as we method the end in the calendar year, the CTMCA picks a lawful fight with the City, in excess of permits or something else. We under no circumstances initiate it. They continue to keep throwing money away on vexatious litigation which they lose and have costs awarded against them. This can be entirely self-inflicted,” he stated.

Soeker explained to the Dabishi Nthambeleni investigators that the most crucial job players on problems with Lottery funding have been Stemmet and previous CTMCA board member Kevin Momberg, “who have been in control of all the admin, funds and functioning lottovip the CTMCA.” The investigators mentioned they had been unable to Get hold of Momberg.

Hats
In the course of their “investigation in loco” within the Primrose Park premises, the investigators “identified a lot of equipment, some in excellent condition, some in negative issue and some that looked rusty and extremely previous”. Stemmet instructed the investigators that there was also an off-web-site storage facility where by “devices and many machinery” had been kept.

“We questioned him to acquire us to the ability but he was evasive to our request.”

Dependant on pics and invoices in GroundUp’s possession, some, if not all, of your goods appear to be machines which was illegally faraway from the CTMCA’s preceding premises. Stemmet is dealing with prices for this removal.

Based on the remaining progress report submitted on the NLC by the CTMCA, the machinery was acquired from Martin-Conne Milliners, a corporation in which Stemmet, his wife and his daughter had been directors at time.

The investigators located this “alarming”.

“With the CIPC research of Martin-Conne Milliners plus the invoices submitted, we Observe the next alarming obtaining: Mr Stemmet himself can be a director of Martin-Conne Milliners. The registered deal with of the organization is five Crete Street, Wetton, Cape City, the exact same deal with on which the museum was meant to be created and/or converted,” they described.

An audit by accountants Kopano Incorporated, connected to the investigative report, recorded the CTMCA was in the whole process of acquiring “equipment, plant and inventory” valued at R8.one-million from Stalph 164 CC, trading as Martin-Conne Milliners. Staph 164 was an in depth corporation of which Stemmet was amongst the administrators.

In accordance with Dabishi Nthambeleni, the corporation has paid R1.two-million as a deposit, which means R6.9-million is still owed, although there is absolutely no payment date set for when this must be compensated.

The Kopano audit as well as near website link among the companies “point out to us that there is ‘foul play’ involved with the purchase of your machinery from the museum workshop”, the investigators mentioned inside the report.

“We find that it's hugely probable that CTMCA applied the funding in the NLC to ‘refund’ one of its key administrators for the residence at the next overpriced charge than the actual rate and price of the assets and/or equipment.”

Recommendations
Dabishi Nthambeleni concluded that it had been not able to establish how the grant towards the CTMCA had been put in.

“Actually, a detailed report on how the funding of your NLC was applied, could be unachievable as the CTMCA doesn't have any receipts, or proof of payments to confirm the quantities expended on Just about every merchandise it asked for funding for. The interim report and remaining report of your CTMCA only attach invoices,” Dabishi Nthambeleni concluded.

The investigators discovered which the NLC had not executed a web-site pay a visit to ahead of approving the grant. But this wasn't common practice at time and they observed no evidence of negligence by NLC workforce.

At time, the NLC’s rules didn't need funded organisations to submit proof of payment with interim experiences, they identified. This meant the CTMCA was capable to get a second tranche of funding without having to present evidence that it had utilized the 1st tranche for its meant goal.

Adhering to the appointment of a different board, commissioner and senior government crew, the NLC has tightened up on these and other difficulties.

Dabishi Nthambeleni encouraged that

the NLC decline any future funding apps in the CTMCA;
the CTMCA and any users who have been linked to the grant be subjected for the NLC’s “delinquency” method;
the NLC open up a criminal situation of fraud with SAPS or maybe the Hawks for allegations of fraud; and
the NLC commence the entire process of recovering the misappropriated resources.
But, instead of act within the report’s tips, the NLC – below its past administration – selected to suppress it, as it had accomplished Along with the former experiences into corruption it experienced commissioned.

GroundUp despatched thoughts to Stemmet and Soeker by using SMS, and requested for email addresses to mail the issues by e mail as well. But no reaction had been been given at time of publication.



The minstrel “museum” in Crete Highway, Wetton. Photograph: Raymond Joseph

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